By Daniel Lanyon on Friday 2 October 2020
DF Capital has received a UK bank licence from the Prudential Regulation.
Distribution Finance Capital, a niche lender providing working capital solutions to dealers and manufacturers across the UK, has received a full UK banking licence from the Prudential Regulation Authority (PRA.
Zopa was the last big fintech name to gain a banking licence, which it did in June. But a few other names have also launched niche banks following the award of a license in 2020. These include bank for farmers Oxbury, digital bank Vive and Castle Trust.
According to a spokesman for DF Capital speaking with AltFi, it intends to launch a range of highly competitive digital personal savings products.
The company was originally spun out from TruFin, a listed owner of fintech assets, in turn, spun out of hedge fund Arrowgrass. Distribution Finance Capital Ltd, the Group company that holds the banking licence, will be renamed DF Capital Bank Ltd, subject to regulatory approval.
Carl D’Ammassa (pictured), Chief Executive Officer said:
“This is an exciting time for DF Capital, as the Company can now unlock its full potential as a regulated bank.”
“We have been bank-ready for some time so are pleased with this news and feel well placed to look beyond the near-term challenges of COVID-19 to support our dealer and manufacturer customers in the knowledge that we will have an additional, and sustainable, funding source in place.”
“I believe we have all the tools in our armoury to progress our growth plans, whilst remaining a strong and well-capitalised bank lender”.
DF Capital was launched in June 2016 and began lending in mid-2017. By the end of 2017, the company had £30m of assets. Distribution Finance Capital Holdings was listed on the LSEG’s AIM market in May 2019.
Loans of more than £750m have been originated to date.
In the full year ending 31 December 2019, total loans rose by 82 per cent to £208m (December 2018: £114m), with gross revenue up 144 per cent to £12.7m (December 2018: £5.2m).